Laguna Beach Municipal Code Ch. 2.30 Purchasing System

Note: Former Ch. 2.30, Purchasing System, derived from Ord. 1368; Ord. 1626; Ord. 1637; and Ord. 1669, was repealed by Ord. 1723, 10/28/2025.

In order to establish efficient procedures for the purchase of supplies, services and equipment, to secure for the city supplies, services and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to ensure the quality of purchases, a purchasing system is adopted.

(Ord. 1723, 10/28/2025)

The responsibility and authority for the purchase of supplies, services and equipment is vested in the city manager, or their designee, who shall be the purchasing officer of the city. As such purchasing officer, the city manager, or designee, shall have authority to:

(a) Review and/or purchase or contract for supplies, services and equipment required by any using agency in accordance with the purchasing procedures prescribed by this chapter, such administrative regulations as the city manager shall adopt for the internal management and operation of the purchasing system, and such other rules and regulations as shall be prescribed by the city council;

(b) Review and/or negotiate and recommend execution of contracts for the purchase of supplies, services and equipment;

(c) As needed, act to procure for the city the needed quality in supplies, services and equipment at least expense to the city;

(d) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;

(e) Prepare and recommend to the city council rules governing the purchase of supplies, services and equipment for the city;

(f) Prepare and recommend to the city council revisions and amendments to the purchasing rules;

(g) Keep informed of current developments in the field of purchasing, prices, market conditions and new products;

(h) Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations;

(i) As needed, supervise the inspection of all supplies, services and equipment purchased to ensure conformance with specifications;

(j) Recommend the transfer of surplus or unused supplies, and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any agency or which have become unsuitable for city use.

(Ord. 1723, 10/28/2025)

The authority to award contracts that legally bind the city to a purchase shall be vested in the city council, unless such authority is delegated as prescribed herein.

(a) Contract award authority delegated by the city council to the city manager may be further delegated by the city manager to department heads as necessary for operational efficiency and effectiveness. Delegation shall be in writing and kept on file with the city clerk.

(b) Dollar thresholds for awarding contracts shall be in accordance with the following level designations, unless otherwise provided for in this chapter:

(1) Department Award. Each department director or designee may authorize the purchase of supplies, equipment, or services as needed for their area of responsibility for purchases up to $30,000.

(2) City Manager Award. Purchases of $30,001 to $100,000 must be approved by the city manager prior to issuance of a purchase order. In the event purchases are entirely reimbursable by third parties pursuant to an application (i.e., CEQA for private development projects, wireless application review, etc.), the city manager may authorize the purchase up to $200,000.

(3) City Council Award. Except as otherwise provided in this chapter, purchases over $100,000 must be approved by the city council.

(c) All purchase contracts and amendments thereto required by this chapter shall be approved by the appropriate award authority and approved as to form by the city attorney.

(d) Amendments to Contracts. For the purposes of this section, "amendments" means any amendment, modification, annual renewal not previously authorized, or change order that results in an increase to the total amount of money that may be spent under a single contract. Approval authority limits shall be based on the total contract amount inclusive of amendments. Modifications to the terms, conditions, or payment provisions, or material changes to specifications or scopes of services, of an existing contract, shall require a written contract amendment unless otherwise provided by the contract of city council direction.

(Ord. 1723, 10/28/2025)

The following solicitation procedures shall govern the purchase of all purchases of goods and services needed for city operations, excluding public projects.

(a) Prohibition of Splitting Orders. Purchases shall not be split or separated into smaller orders for the purpose of circumventing the solicitation or contract award requirements specified in this chapter.

(b) Open Market Purchases. Purchases of goods and services up to $10,000 for a one-time purchase, do not require a competitive solicitation and may be made following the receipt of one price quote or proposal. However, as a matter of fiscal prudence, nothing shall preclude the person initiating the purchase from conducting price comparisons to ensure that the best overall value is obtained and he/she shall endeavor to obtain at least three price quotes or proposals.

(c) Competitive Solicitation. Purchases of goods and services with an estimated cost greater than $10,000 shall be made following the solicitation of at least three written price quotes or proposals, which may be solicited using any means reasonably calculated to obtain a combination of the lowest price and highest quality of goods or services available, in the reasonable discretion of the city manager and consistent with the city council Administrative Policy, Policy 1-9, "Purchasing Policy and Procedures."

(1) The person or department initiating the purchase shall keep a record of all such solicitations and the price quotes or proposals submitted in response thereto.

(2) If the person or department initiating the purchase is unable to obtain three price quotes or proposals from responsible bidders or proposers after making diligent efforts to do so, the purchase may be made without obtaining three price quotes or proposals, provided that the efforts made to obtain three quotes or proposals shall be documented in the contract file for the purchase.

(3) Nothing in this subsection (c) shall preclude the city manager from requiring a more formal means of solicitation if deemed to be in the best interest of the city.

(d) Bid or Proposal Evaluation.

(1) The city may reject any or all bids or proposals in response to a city solicitation in its sole discretion.

(2) If no bids or proposals are received, the city may make the purchase by any lawful reasonable and available means, notwithstanding the other requirements of this chapter.

(3) If two or more bids or proposals received are for the same total amount or unit price, quality and service being exactly equal, the contract may be awarded to either bidder or proposer.

(4) Contracts for goods only shall be awarded to the responsible vendor submitting the lowest bid that provides the needed goods as determined by the city .

(5) Contracts for services, except for professional services, may be awarded to the responsible bidder submitting the lowest responsive bid, provided, however, in the event the City Manager determines that it is in the best interest of the City, contracts for services subject to this section can be awarded pursuant to subsection (d)(6).

(6) Contracts for professional services shall be awarded on the basis of demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services, offered at a fair and reasonable price as determined by the city.

(Ord. 1723, 10/28/2025)

The competitive solicitation procedures mandated herein shall not apply to procurements that satisfy one or more of the following criteria:

(a) No Competitive Advantage. When the city manager or city council determines that no price advantage would be gained from a competitive solicitation process.

(b) Sole Source. When the city council or city manager determines that there is only one source that provides the needed services or materials, supplies, and equipment, or to ensure compatibility with other city products and equipment, the city shall work to procure these items in the best interest of the city. Instances of when a sole source procurement may be necessary:

(1) The good or service is available from only one vendor.

(2) In order to match other products in use to ensure compatibility.

(3) In order that a field test or experiment may be made to determine a product's suitability for future use.

(4) Competition is deemed inadequate after soliciting a number of sources.

(5) Vendor holds a unique set of skills or expertise that makes it impossible/unlikely anyone else can do the work or the same quality of work.

If there is adequate justification for a sole or single source purchase, then the firm may be selected without other solicitations upon approval of the city manager anticipated to be less than $100,000 and upon city council approval for all other contracts. All sole or single source procurements shall include a written justification and recommendation of the department head.

(c) Competitive Bidding Already Completed. When the vendor or service provider was awarded a contract by another public agency, said agency used solicitation procedures substantially similar to those that the city would have been required to use, and the vendor or service provider offers the same price(s) to the city that it offered to the other agency. Additionally, when the purchase is based on a master agreement, cooperative agreement, multiple award schedule, or other types of agreements entered into by the state of California or the federal government. Examples include, but are not limited to, California Multiple Award Schedules (CMAS) and Federal General Services Administration (GSA) contracts.

(d) Emergency. Where an emergency situation exists, or where a disaster has been declared by the city council, state or federal government, such that the life, health or safety of employees or the general public is at risk, or when significant harm may occur to city property or operating systems and goods and/or services must be procured immediately to prevent loss or substantial disruption of city services or functions; provided that competitive bidding is not required by a state or federal reimbursing agency and is otherwise consistent with state law.

(e) Mandated Expenditures. When expenditures are mandated by law or regulation, such as county booking fees, utilities, postage, waste disposal fees or other non-negotiable permit, use or application fees.

(f) Legal Professional Services. When, in the opinion of the city attorney, outside legal counsel services are needed and that the applicable solicitation procedures will not result in a better outcome in terms of price and/or quality of service for the city. This exception shall only be relied upon in the event the budget line item for outside counsel services has sufficient, unencumbered funds in an amount equal to or greater than the cost of the outside counsel service. The city attorney shall be authorized to execute an agreement for outside legal counsel services in any amount provided the other provisions of this subsection (f) are complied with.

(g) Best Interest of City. When the city manager determines that bidding would be impractical, inefficient, or otherwise not in the best interest of the city, provided that contract file contains sufficient documentation to justify bid impracticality and does not otherwise violate any federal or state law.

(Ord. 1723, 10/28/2025)

In case of an emergency, the city council may, by a four-fifths vote, proceed at once to replace or repair any public facility, take any action required by that emergency, including procure necessary equipment, services, and supplies for those purposes, without giving notice for bids to award contracts pursuant to Public Contract Code Section 22050.

(a) Before taking any action, the city council shall make a finding that the emergency will not permit delay resulting from a competitive bid process, and the action is necessary to respond to the emergency. Such findings shall be based upon substantial evidence set forth in the minutes of its meeting pursuant to Public Contract Code Section 22050(a)(2).

(b) If the city council has ordered any emergency action, it shall review the emergency action at its next regularly scheduled meeting. Until the action is terminated the city council shall determine the need to continue such action by a four-fifths vote at each meeting pursuant to Public Contract Code Section 22050(c)(1).

(c) In case of an emergency, if notice for bids to award contracts will not be given, the city shall comply with all requirements of Public Contract Code Section 22050.

(d) An "emergency" means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.

(Ord. 1723, 10/28/2025)

Except in cases of emergency, the city manager shall not issue any purchase order for supplies, services or equipment unless there exists an encumbered appropriation in the fund account against which said purchase is to be charged.

(Ord. 1723, 10/28/2025)

The following solicitation procedures shall govern the bidding and awarding of contracts associated with public projects.

(a) Uniform Public Construction Cost Accounting Act. The city has adopted the Uniform Public Construction Cost Accounting Act (Public Contract Code Section 22000 et seq., as may be amended) (the "Act") and all expenditures for public projects, as defined by Public Contract Code Section 22002, by the city shall be made in accordance with the Act.

(b) Solicitation Procedures. Prior to making any purchase, the person or department initiating the purchase shall make a reasonable and good faith estimate of the anticipated cost of the purchase and then proceed with the appropriate solicitation procedure below. Purchases shall not be split or separated into smaller orders for the purpose of circumventing the procedures hereunder.

(1) No Competitive Bidding Required. Public projects with an estimated cost of $75,000 or less (or as such limit may be amended from time to time by the Act or other valid authority) may be performed by city employees by force account or else may be awarded by negotiated contract or by purchase order without competitive bidding.

(2) Informal Bidding Required. Public projects up to $220,000 (or as such limit may be amended from time to time by the Act or other valid authority) shall require either the informal bidding procedures set forth in subsection (c) or the formal bidding procedures set forth in subsection (d).

(3) Formal Bidding Required. Public projects with an estimated cost in excess of $220,000 (or as such limit may be amended from time to time by the Act or other valid authority) shall require the formal bidding procedures set forth in subsection (d).

(c) Informal Bidding Procedures. The following procedures apply to informal bids: A notice inviting bids shall be prepared, which describes the project in general terms, explains how to obtain more detailed information about the project, and states the time and place for the submission of bids. The notice shall be mailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with subsection (e), and to all construction trade journals as specified by the California Uniform Public Construction Cost Accounting Commission ("Commission"), in accordance with Public Contract Code Section 22036, including any amendment thereto.

Notices sent to contractors on the contractors list shall be sent not less than 10 calendar days before bids are due and may be sent by mail, fax, or email. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids; provided, however:

(1) If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the Commission.

(2) If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

(d) Formal Bidding Procedures. The following procedures shall apply to formal bids: A notice inviting bids shall be prepared, which describes the project in general terms, explains how to obtain more detailed information about the project, and states the time and place for the submission of bids. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the city; or, if there is no newspaper printed and published in the city, in a newspaper of general circulation which is circulated within the city; or, if there is no newspaper which is circulated within the city, publication shall be by posting the notice in at least three places within the city as have been designated by ordinance or regulation of the city as places for the posting of its notices.

The notice inviting formal bids shall also be sent electronically, if available, by either fax or email and mailed to all construction trade journals specified by the Commission pursuant to Public Contract Code Section 22036. The notice shall be sent at least 15 calendar days before the date of opening the bids. In addition to notice required by this section, the city may give such other notice as it deems proper.

(e) Contractors List. The city shall develop and maintain a list of contractors in accordance with the provisions of Public Contract Code Section 22034 and criteria promulgated from time to time by the Commission.

(f) Bidder's Security. All bids shall be presented under sealed cover accompanied by one of the following forms of bidder's security: (1) cash; (2) cashier's check made payable to the city; or (3) a bidder's bond executed by an admitted surety insurer made payable to the city. Such security shall be an amount at least equal to 10% of the bid amount. No bid shall be considered unless security in the form above set forth is enclosed with the bid.

(g) Award of Contract.

(1) If a contract is awarded, it shall be awarded to the responsible bidder submitting the lowest responsive bid. If two or more bids are the same and the lowest, the contract may be awarded to either bidder.

(2) If the project was bid using informal bidding procedures, and all bids received exceed $220,000, as such limit may be amended from time to time, the city council may, by adoption of a resolution by a four-fifths vote, award the contract to the lowest responsive and responsible bidder if the amount of the contract does not exceed $235,000, as such limit may be amended from time to time, and it determines the city's cost estimate for the project was reasonable. Otherwise, the project shall be re-bid following the formal bidding procedures.

(3) In its discretion, the city may reject any or all bids, and may do any of the following:

A. Abandon the project;

B. Re-advertise for bids in the manner described in this chapter;

C. By a four-fifths vote, the city council may declare by resolution that the project can be performed more economically by city employees and may have the project done by force account without further complying with this chapter. Prior to rejecting all bids and declaring that the project can be more economically performed by city employees, the city shall furnish a written notice to an apparent low bidder, informing the bidder of the city's intention to reject the bid. Such written notice shall be mailed at least two business days prior to the hearing at which the city intends to reject the bid.

(4) If no bids are received through the formal or informal bidding procedure, the project may be performed by city employees by force account or by a negotiated contract without further complying with this chapter.

(Ord. 1723, 10/28/2025)

The following procedures shall apply for the disposition of the city's surplus personal property.

(a) Approval Authority and Disposition. The approval authority to dispose of surplus personal property having a salvage value shall be consistent with the approval authority levels in Section 2.30.030.

(b) All departments shall submit to the city manager reports showing all supplies, materials and equipment which are no longer used or usable or which may have become obsolete, unsuitable or worn out. The city manager shall have authority to sell said supplies, materials and equipment, or to exchange the same for, or trade in the same on, new supplies, materials and equipment. Such sales, exchanges or trade-ins shall be made to the highest and best bidder, or shall be made at a public auction as hereinafter set forth in this section.

(c) Public Auction. A notice describing the property in sufficient detail for its identification shall be prepared by the city manager and shall be given at least five days before the time fixed therefor in a way designed to maximize the reach of said notice, that my include, but is not limited to, publication in an established newspaper or other publication of general circulation published in the city, social media or other electronic postings, physical notices in conspicuous areas designed to reach the maximum number of possible bidders.

(d) City officers shall not be purchasers at any such public auction authorized, conducted, or administered by them in their official capacity, nor shall any city officer or employee directly or indirectly submit a bid at the auction if they have participated in the preparation or conduct of the auction in their official capacity.

(e) The property so offered for sale shall be sold to the highest bidder for cash, provided that the city manager may, at their discretion, fix a minimum sale price and may refuse to sell unless the minimum price is offered, and may further refuse to sell unless a deposit of security is immediately made.

(f) Any property sold at public auction shall be provided to the purchaser upon full payment of the purchase price.

(g) The proceeds of the auction sale or sales shall immediately be deposited into the General Fund.

(Ord. 1723, 10/28/2025)

When a purchase of goods and/or services involves the expenditure of federal or state funds, the procurement shall be conducted in accordance with mandatory applicable federal or state regulations, and the chosen bidder shall be responsible for compliance with all applicable regulations and conditions.

(Ord. 1723, 10/28/2025)